Tax Implications Of The Single Payment Scheme

Sale of payment entitlement Only

If payment entitlement is sold without land then VAT will be due at the standard rate on the sale if the sale proceeds exceed the relevant threshold for registration (currently €25,500 per 12 month period). A farmer who exceeds the threshold by virtue of selling payment entitlement will be permitted to register for VAT in respect of that single transaction. Non-VAT-registered farmers who purchase payment entitlement and suffer VAT will not be permitted to register in respect of the single transaction, but will have the normal registration option open to them.